Money Makes the World Go Round

20151119

Socioeconomic studies are not only written about bohos, hipsters and the YOLO generation: the superrich are very popular objects of investigation, too. After all, they are the ones whose buying behaviour and lifestyles set the trends.
The Wealth-X Report 2015 by Sotheby’s International Realty analyses the past decade and ventures a prognosis for the next ten years. It comes to the conclusion that the superrich – those with a fortune of over US$30 million – have ridden out the crisis without any problems. On the contrary: their community has grown monumentally over the last decade – by 61 per cent to 172,850 people. Their combined capital adds up to US$20.8 trillion.

Travelling People?

Numerically, Europe has the greatest density of rich people, followed by Asia and the USA, which are neck and neck. The undisputed centre of these so-called ultra high net worth individuals (UHNWI) is London. In second place is Tokyo, third New York. Yet again, London is the European exception. There, the density of UHNWIs will continue to increase, whereas it is likely to stagnate in the rest of Europe. Instead, people are watching the development of India with bated breath. Africa is in the spotlight, too, particularly the markets in South Africa, Nigeria and Kenya.
The superrich are extremely mobile, but prefer to travel to tried-and-tested hotspots: everywhere where luxury brands can be found. At the same time, their desire for privacy and individuality is steadily on the rise. Austria is keeping an interested eye on Russia: nowhere else are the UHNWIs as willing to leave as they are there: more than 30 per cent want to take up residence abroad and 60 per cent of them send their children to Europe or the USA to be educated.

New Old Money

Although somewhat macabre, increased mortality will set the tone of the next decade, too. Inherited wealth is experiencing a comeback: the descendants of those whose fortune grew on the fertile ground of the new economy will come into their inheritance for the first time, and are known as the first “new old money”.